With so many magnificence manufacturers launching on what seems like a each day foundation, it is particular when the general public takes a eager curiosity in a specific firm. Over the previous couple of weeks, nevertheless, all eyes have been on BeautyCounter, as folks search for info on the corporate’s standing after information unfold that it is closing.
On Might 7, the model’s founder and CEO Gregg Renfrew posted an replace on her Instagram web page explaining to followers that Counter Manufacturers, BeautyCounter’s dad or mum firm, was closing its doorways. Within the publish, she explains that she fashioned a brand new firm (G2G) and was in a position to purchase the rights to promote BeautyCounter merchandise sooner or later however that the relaunch timeline that she hoped for was not possible. As an alternative, they’re now focusing on a late 2024 date. This has led to a spike in inquiries like “What occurred to the BeautyCounter model?” and “Why did BeautyCounter shut?” on Google.
This announcement follows the leak of a confidential e-mail that was despatched to model advocates (the community of entrepreneurs that promoted the model to others each on-line and in particular person) on April 17, which was the primary indicator to some supporters that there was bother on the horizon. Posted to Reddit, the e-mail seemed to be an instantaneous discover of the termination of all model advocates, with sparse particulars on their future with the corporate. “You’ll obtain cost of all accrued and unpaid commissions via the termination date, and also you shall in any other case haven’t any additional rights to any bonuses, commissions, or different compensation following the termination date,” it learn partially. Close to the top of the e-mail, the model reminded advocates that they had been sure to the confidentiality and non-disclosure agreements of their contracts.
Since then, one other e-mail has gone out to the model advocates from Renfrew that solutions a couple of extra questions in regards to the transition. PS obtained a duplicate of this e-mail for evaluate from a present worker. “As , Carlyle purchased Counter Manufacturers in 2021 and, on the finish of that yr, I used to be requested to step down as CEO,” it reads. “In February 2024, at their request, I re-joined as CEO of Counter Manufacturers. I used to be admittedly hesitant to return however in the end accepted the function . . . Nonetheless, upon my return, the outdated firm’s financial realities had been worse than anticipated. It had extra debt than funds to pay that debt, and Carlyle selected to not present additional funding. Merely put, Counter Manufacturers ran out of cash.”
The remainder of the e-mail reiterated that whereas Carlyle Group selected to liquidate Counter Model’s property, the brand new firm that she based does personal sure BeautyCounter rights and is working to relaunch the model with the identical mission of making clear, high-performing beauty merchandise. It additionally answered some generally requested questions, together with: “Will Advocates nonetheless be concerned within the new firm?” (Sure); “Will BeautyCounter merchandise be offered in Ulta shops going ahead?” (They are going to be out there in bodily Ulta retailer areas via July 2024, after which they are going to solely be offered via the trailer on-line); and “What is going on with the retail shops?” (Non-seasonal retail areas in New York Metropolis and Denver are closed, however a seasonal Nantucket location will stay via summer time 2024).
As of proper now, no additional particulars can be found in regards to the relaunch. Till then, followers of the model can maintain an eye fixed out for particulars through each Renfrew and the model’s Instagram pages.
Ariel Baker is the affiliate editor for PS Magnificence. Her areas of experience embody celeb information, magnificence tendencies, and product evaluations. She has further bylines with Essence and Forbes Vetted.